7. Income and expenditure estimates
7. Income and expenditure estimates
As well as providing clear capital costs, you need to have considered how much it will cost to run the project in the short to medium term. For a small capital project, this may simply be highlighting that there will be a maintenance requirement and identifying how that will be carried out. For a larger project, it will require detailed estimates of income and expenditure over a number of years, to show that your proposals are financially sustainable in the long term.
An example of an income and expenditure table is provided in the link below.
Example Income and Expenditure table
Each line of this table would be informed by detailed market research or previous costs and desk research which could be evidenced if requested
| Income |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
|---|---|---|---|---|---|
| Courses and training income |
£30,000 |
£30,900 |
£31,827 |
£32,782 |
£33,765 |
| Retail sales |
£5,000 |
£5,150 |
£5,305 |
£5,464 |
£5,628 |
| Room rental |
£4,000 |
£4,120 |
£4,244 |
£4,371 |
£4,502 |
| Donations and legacies |
£1,000 |
£1,030 |
£1,061 |
£1,093 |
£1,126 |
| Estimated Grant funding |
£5,000 |
£4,000 |
£3,000 |
£2,000 |
£1,000 |
| Total Income |
£45,000 |
£45,200 |
£45,436 |
£45,709 |
£46,020 |
| Costs |
Yr 1 |
Yr 2 |
Yr 3 |
Yr 4 |
Yr 5 |
| Core wages inc oncosts |
£25,000 |
£25,750 |
£26,523 |
£27,318 |
£28,138 |
| Electricity |
£1,500 |
£1,545 |
£1,591 |
£1,639 |
£1,688 |
| Insurance |
£1,000 |
£1,030 |
£1,061 |
£1,093 |
£1,126 |
| Repairs and maintenance |
£1,500 |
£1,545 |
£1,591 |
£1,639 |
£1,688 |
| Telephone and Internet |
£2,000 |
£2,060 |
£2,122 |
£2,185 |
£2,185 |
| Professional fees (accountant) |
£750 |
£773 |
£796 |
£820 |
£820 |
| Stationery/sundries |
£1,500 |
£1,545 |
£1,591 |
£1,639 |
£1,639 |
| Total Costs |
£43,500 |
£43,655 |
£43,845 |
£44,070 |
£44,381 |
| Overall surplus/ loss |
£1,500 |
£1,545 |
£1,591 |
£1,639 |
£1,639 |
| Cashflow |
£1,500 |
£3,045 |
£4,636 |
£6,275 |
£7,915 |
Notes
Annual 3% increment added. All figures based on previous accounts and market research.
Estimated earned income will need to be based on market research and clear rationales illustrating how the numbers were arrived at (x customers per week paying x for a coffee for example). Costs will need to be researched and best estimates arrived at by looking at similar projects and premises.
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